Operator: [Operator Instructions]. And the questions come from the line of Jon Tanwanteng from CJS. Please ask your question. Your line is open.
Jonathan Tanwanteng: Good morning. Thank you for taking my question about the nice quarter guys. My first one is, again, what’s driving the strength in oilfield after I think you tried to level set expectations a little bit last quarter and what are your run rate expectations heading into ’24?
Patrick Williams: I mean, I leveled off a little bit when you look over year-over-year. It’s still, we’re still driving a lot of strength in our global business, whether it’s in Saudi, whether it’s in other parts of the country. So, it’s balancing out that portfolio, which has still helped us improve and grow in that business. As we’ve stated, you will see some moderation in the production side of the business. But I think the diversification, Jon, within the portfolio has helped us to still maintain a pretty good growth in that business with good off base and good margins. You will see a little slowdown again in 2024, but it’s still a very strong business right now. The guys have done a really good job in that area.
Jonathan Tanwanteng: Okay. Just to be clear, do you see growth in that business on an overall basis for the year or is that something that’s going to decline?
Patrick Williams: I think it’s probably going to be a little flat. You might get a little growth, but I would probably say flat to just a little tiny bit of growth for 2024.
Jonathan Tanwanteng: And then I expect that the tax rate guidance for 25%, that’s reflecting where you expect the revenues to come from just on a geographic basis?
Ian Cleminson: That’s correct, Jon.
Jonathan Tanwanteng: Okay, great. And jumping over to QGP, I was wondering if you could tell us what the revenue and EBITDA for that business was and the contribution you expect in ’24?
Ian Cleminson: Yes. It’s pretty small at the moment. It’s a nice tuck in. We’ve said that we’re going to deliver about $0.08 of earnings off that. We’ve not disclosed what the revenue and EBITDA is, Jon, but it’s you can sort of reengineer it back from $0.08. We’re really excited about actually the — we’ve now completed the acquisition in Q4 and the team is working really well together. We have lots of folks down there and we’re very confident that the synergies that we can drive from a revenue perspective and the opportunities we’ve got both from sales of their products and our products and the technology crossover, It’s going to drive a really nice acquisition. So, we’re super excited by it.
Jonathan Tanwanteng: And then just any updates on the trends in Performance Chemicals? Obviously, you’ve lapped, I guess, inventory issues coming from last year, but what’s the organic trend in both demand and mix as you see it going forward?
Patrick Williams: I think it’s that mid-single-digit growth that we’ve been talking about. We’ve seen pretty much the inventory issues go away in most of the product lines. There is still some, what I would say, demand destruction in the marketplace, but we are definitely starting to see that come back. So, we’re pretty excited about the year. Again, I think you’re probably talking low single-digit growth to mid-single-digit growth in that business.
Operator: [Operator Instructions]. We are now going to proceed with our next question. And the question comes from the line of Mike Harrison from Seaport Research Partners.
Michael Harrison: Good morning. Congrats on a strong finish to the year.
Patrick Williams: Thanks, Mike. Appreciate it.
Michael Harrison: Maybe just kind of continuing on the question on Performance Chemicals, you mentioned that you expect to see some growth. I assume you’re talking top-line growth in terms of low to mid-single-digit growth. But I’m just curious if maybe you can talk a little bit more about we’ve seeing a lot of, kind of I believe what’s mostly mix erosion rather than pricing erosion, but talk about what you’re seeing in terms of mix. And then I guess we’ve seen a pretty dramatic change in the operating margin in that business kind of starting the year in the 7%-ish range, finishing the year here at about 13%. Where should we expect to see that margin progress to over time in Performance Chemicals?
Patrick Williams: Yes, I mean, if you look at Mike the general businesses, as you can tell, are starting to come back. The guys have done a really good job of focusing on margin improvement. We’re starting to see the top-line growth that we anticipated. There are still some difficult situations with raw materials. You still have you saw the CPI numbers that came out yesterday. We are still seeing some inflationary problems in the marketplace. But overall, I think that we’ve filtered through most of the high-cost inventory. We’ve really focused on margin improvement, not only from a raw material standpoint, but from a technology point of view to the customer base to make sure that we’re obviously keeping them competitive as well.
So, we’ve done a really good job in that area and I think that’s obviously where you saw the margin improvement. I think moving forward probably the margins that you see today will probably carry forward in 2024, may go a little higher. And that’s our anticipation and that’s our focus right now.
Michael Harrison: All right. Thanks for that. And then switching over to the fuel specialties business, understand that we had a lot of noise going on there with the stuff going on in Brazil. But you talked about kind of sustainably looking to get back to that. I believe 19% to 21% operating margin is what you pointed to there. What are some of the key drivers for the expected margin improvement in that Fuel specialty business?
